The Chinese
Outbound Market
By Doctor Roger March
Director
Inbound Tourism Studies Centre
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Overview of Chinese Outbound - 1 |
- 1983: Pleasure travel begins (to HK)
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- 1991: travel allowed to Malaysia, Singapore, Thailand
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- 1995: 4.52M overseas (-25%); 1.26M for pleasure
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- 1996: 5.06M overseas (+12%)
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- Up to 12.5M overseas travelers expected in 2001?
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- Main destinations: Hong Kong, Thailand, Macau, Singapore, and Korea
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- 2 travel types: official (govt./study/technical missions) & private
(45%)?
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- Main source markets are provinces of Beijing, Guangdong & Shanghai
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| Overview of Chinese Outbound
- 2 |
- Singapore, Thailand, Malaysia, Philippines Hong Kong & Macau have
Approved Destination Status (ADS)
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- ADS destinations account for 70% of outbound market
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- 1997: over 5M visitors to ADS destinations
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- Japan and South Korea reportedly seeking ADS
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- Introduction of 5-day work week in May, 1995 increased leisure time
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- China has 81 civil airports capable of handling Boeing 737s or larger
(end-1995)
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- Chinese travel to HK, Thailand, Singapore in 3Q 1997 dropped sharply
(-21% to 470,000 -28% to 91,000, -3% to 49,000)
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| Government role in outbound
travel |
- Travel and tourism industry controlled by the China National Tourism
Administration (CNTA)
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- Chinese government is concerned about loss of hard currency
CNTA control mechanisms: limited travel allowance, tight control of travel
documents,and complicated procedures for joining group tour.
- travel to Singapore has fluctuated amid complaints
of fewer exit permits & banker’s guarantee of (US$709) per person
- CNTA reportedly considering introducing 10% quotas
on number of outbound tourists handled by TAs
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- But in 1996 China had 6.74 million overseas visitors and 5.06 million
outbound travelers?
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- All travel agents are government owned - but self-funding
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| Structure of Outbound Industry
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- 67 outbound agents able to sell travel to Australia
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- Lax regulation led to emergence of unethical operators in regional
cities
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- Group travel preferred to individual
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- High degree of competition
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| Characteristics of Chinese tourists |
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- Strong desire to experience Western culture
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- 80% are male and ave. age of 45 (NZ Tourism Board)
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- 30% are male and 75% over 50 (PATA 1996 survey)
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- Short-haul destinations favoured
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- Multi-destinational travel returning through HK popular
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- Sightseeing popular: Australia’s theme park appeal
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| Characteristics of Chinese tourists |
- Strong propensity to shop?
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- Overall, less spending on lodging, food & transport
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- Strong desire to eat Chinese food
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- Little English spoken - strong demand for Mandarin-speaking local guides
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| Chinese Travel to Australia |
- Tripled 1992-96: 18,700 to 54,000 (23% holiday)
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- 62,180 arrivals 12mths ended Sept 30 1997
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- TFC forecasts of 139,000 by 2001 ‘conservative’
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- Australia was the 3rd most desired destination after US and Japan (1996
PATA survey)
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- 5 carriers on China-Australia route: Qantas, Ansett, China Eastern,
China Southern, Air China
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| IVS 1996 Profile |
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- ave. stay: 45 nights; median stay 11 nights
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- Main destinations: Syd (47% of visitor nights), Mel (24%), Bris (24%)
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- 56% of visitor nights with friend or relative - highest of any inbound
market
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- strongest desire to visit casinos of any market
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- most dissatisfied market with visa requirements, cost of ground transport
& cost of accommodation
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| The critical issues |
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- Australian industry uneducated about needs of Chinese market
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- Chinese travel industry and consumers have little knowledge of Australia
- Chinese travel trade needs to be educated about Australia
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| The critical issues
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